Sunday, June 12, 2016

Gold prices remain under pressure ahead of the release of Wednesday’s Federal Open Market Committee minutes. However, one famed economist, known for his usually “gloomy” economic outlook, says the U.S. central bank will not raise rates and may actually resort to more easing. “My impression is that the Fed will not increase rates any further this year – my impression is that the economy is actually weaker than the statistics would suggest,” Marc Faber.

Thursday, June 9, 2016

Marc Faber, editor of the Gloom, Boom & Doom report, is well-known for his persistently negative outlook on equities. But that doesn't mean he's bearish on every stock.

"Some depressed sectors are showing signs of major lows," Faber wrote to CNBC on Thursday. "I am still negative about stocks but I can see more money printing in the future, which will lift some sectors."

Specifically, Faber is bullish on mining stocks as well as on oil and gas names. His reasoning is that if the values of currencies become depressed, gold and other commodities could see additional demand from those hoping to use them as stores of value.

"The most attractive asset in my view is gold shares and oil and gas shares," Faber said Wednesday on CNBC's "Trading Nation." "I think they still have significant upside potential this year."

More generally, the frequently doom-predicting Faber now emphasizes balance in one's portfolio.

"You need to be diversified," he said Wednesday. "To own some real estate makes sense, to own some equities makes sense, to own some cash and bonds probably makes sense, and to own some precious metal makes sense."

However, he warns that "the market will not go up. Technically, the market isn't looking very good."

Monday, June 6, 2016

The market was somewhat spooked by the minutes from the Federal Reserve's April meeting, which suggested that if the economy continues to improve, the central bank will raise interest rates in June. But Marc Faber has an alternative take on what the central bank is up to.

In the minutes released Wednesday, it was recorded that "Most participants judged that if incoming data were consistent with economic growth picking up in the second quarter, labor market conditions continuing to strengthen, and inflation making progress toward the Committee's 2 percent objective, then it likely would be appropriate for the Committee to increase the target range for the federal funds rate in June."

While Fed officials frequently highlight their data dependency, the minutes surprised market participants who had thought a June hike was out of the question, and the release consequently led to a dip in stocks and a rise in yields on Wednesday afternoon.

Yet Faber, the editor of the Gloom, Boom & Doom Report, questions the Fed's stated reliance on economic data. In fact, to him, gauging the market's reaction to the potential for a June hike was part of the point of the release.

The Fed "said a rate hike is on the table so they can watch the market reaction," Faber said Wednesday on CNBC's "Trading Nation."

Friday, June 3, 2016

The three major U.S. averages were up slightly Wednesday but have climbed more than 5 percent each in the last three months. In January, Faber told CNBC that "most stocks" would drop between 20 and 40 percent, which seems "conservative."

While Faber did not give a specific prediction for where markets would go from here, he said central banks in the U.S., Europe and Japan have "manipulated" stocks. He added they may not sustain their current levels with slow economic growth in the U.S. and around the world.

Faber said the leading U.S. presidential candidates, former Secretary of State Hillary Clinton and businessman Donald Trump, add more uncertainty to markets.